The lighting was done through the use of shaders, and I can't elaborate more since it was Lunasii who worked on that (I can however, say it was done with a lot of pain and mald involved). The method we used for the shaking words is a trade secret, but I can reveal that if any sane programmer saw what we were doing, they would lose their mind over how horrible it is.
Viewing post in Shadeshift jam comments
Using the 2D lighting package would have been smart, and I'd learn it if I ever had to make something like this again. What I ended up doing was writing a scuffed version of raytracing combined with a ridiculous amount of stencil shaders, which is why the light can look a little weird at times. I also believe that good practices should be shared and encouraged, and for that reason I'm not going to comment on how we made the shaking text...